• GSTR and GSTR Tool :
GSTR, Goods and Service Tax Returns, is a document which contains details about the income, earned from sales and purchase of goods. GSTR has to be filed by a registered dealer or company under GST law that includes Purchase, Sales, Output GST (GST paid on sales), Input Tax Credit (GST paid on purchase). There are list of GSTR categories e.i GSTR-1, GSTR-2, GSTR-3, GSTR-4, GSTR-5, GSTR-6, GSTR7, GSTR-8, GSTR-9, GSTR-10, GSTR-11, each of these GSTRs has its own particular area to cover and to record.
To measure GSTR on the basis of different categories of dealers and companies, GSTR Analysis tool has its work on it. GSTR tool is to check status of all GST returns of a prospective or new client and cross check filing of GST returns of existing clients.
• Major impacts of GSTR on MSME industry :
1. Various taxes including indirect taxes such as Service Tax, Stump duty, Custom duty, VAT and direct tax have the hectic 2 procedure that MSME had to face while paying tax. But the implementation of GSTR has made all the taxes into one frame.
2. Before the introduction of GST, it was mandatory to make a VAT payment and VAT registration if the turnover was more than 5 lakh in few states and 10 lakh in a few others. But under GST, there is no need to pay tax if annual income is under 10 lakh.
3. MSMEs had to limit their customers within state as they had to bear the ultimate burden of tax on interstate sales, reducing their customer base. But now with implementation of GST, this has been nullified as tax credit transfers irrespective of location of buyer and seller. This encourages MSME to expand their reach across borders.
4. GSTR procedure saves the time of MSME industry and takes a short span of time, thus GSTR encourages MSME owners to utilise their time to expand their business.
5. Some SMEs are not able to use internet for GST registration or they do not have technical expertise. Therefore they have involve a mediator to complete the registration procedure.
6. GST has posed the burden of higher tax rate for service provider which comes under MSME industry as there increased 15% service tax to 18% GST.
7. The tax neutrality does not differentiate luxury goods and normal goods. Before the GST was introduced, luxury goods and services were levied with higher tax by government. But under GST all goods and services pay the same tax, thus creating gap between MSME and large business.
